Penske Automotive Group, Inc. $PAG Stake Lessened by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors LP reduced its stake in Penske Automotive Group by 10.7%, selling 152,538 shares and currently holds 1,274,850 shares valued at approximately $183.5 million.
• Penske Automotive Group announced a dividend increase to $1.32 per share, reflecting an annual yield of 2.9%, which will be paid on September 3rd, 2023.
• Several analysts upgraded their ratings on Penske Automotive Group, with Bank of America raising the target price from $190 to $205 and maintaining a "buy" rating.

Dimensional Fund Advisors LP lessened its stake in Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 10.7% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,274,850 shares of the company's stock after selling 152,538 shares during the quarter. Dimensional Fund Advisors LP owned about 1.93% of Penske Automotive Group worth $183,539,000 at the end of the most recent quarter.

Other institutional investors also recently made changes to their positions in the company. UMB Bank n.a. lifted its position in Penske Automotive Group by 421.5% during the first quarter. UMB Bank n.a. now owns 339 shares of the company's stock valued at $49,000 after buying an additional 274 shares in the last quarter. GAMMA Investing LLC raised its stake in shares of Penske Automotive Group by 51.9% in the 1st quarter. GAMMA Investing LLC now owns 398 shares of the company's stock valued at $57,000 after acquiring an additional 136 shares during the period. Fifth Third Bancorp lifted its holdings in shares of Penske Automotive Group by 31.0% during the 1st quarter. Fifth Third Bancorp now owns 528 shares of the company's stock valued at $76,000 after acquiring an additional 125 shares in the last quarter. TD Waterhouse Canada Inc. lifted its holdings in shares of Penske Automotive Group by 42.4% during the 4th quarter. TD Waterhouse Canada Inc. now owns 531 shares of the company's stock valued at $81,000 after acquiring an additional 158 shares in the last quarter. Finally, State of Wyoming purchased a new stake in Penske Automotive Group during the 4th quarter worth $105,000. 77.08% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages have recently weighed in on PAG. JPMorgan Chase & Co. raised Penske Automotive Group from an "underweight" rating to a "neutral" rating and upped their target price for the stock from $155.00 to $175.00 in a research report on Tuesday, August 5th. Morgan Stanley upped their price target on Penske Automotive Group from $180.00 to $190.00 and gave the stock an "overweight" rating in a report on Thursday, August 14th. Bank of America lifted their price objective on shares of Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Stephens restated an "equal weight" rating and issued a $140.00 target price on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Finally, Citigroup raised their price target on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a report on Monday, May 19th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Penske Automotive Group presently has an average rating of "Moderate Buy" and a consensus price target of $181.00.

Insider Buying and Selling at Penske Automotive Group

In other Penske Automotive Group news, Director Lisa Ann Davis sold 1,604 shares of the business's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $180.74, for a total transaction of $289,906.96. Following the completion of the transaction, the director directly owned 1,529 shares of the company's stock, valued at $276,351.46. The trade was a 51.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Shane M. Spradlin sold 3,158 shares of the business's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $167.10, for a total value of $527,701.80. Following the transaction, the executive vice president owned 36,152 shares of the company's stock, valued at approximately $6,040,999.20. This represents a 8.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 84,748 shares of company stock valued at $13,748,660. Corporate insiders own 52.40% of the company's stock.

Penske Automotive Group Stock Down 0.0%

Shares of NYSE:PAG traded down $0.09 during midday trading on Monday, reaching $187.22. The company had a trading volume of 138,783 shares, compared to its average volume of 241,496. The stock has a market capitalization of $12.36 billion, a P/E ratio of 13.03 and a beta of 0.87. The stock's fifty day moving average price is $176.21 and its 200-day moving average price is $164.90. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.90 and a quick ratio of 0.21. Penske Automotive Group, Inc. has a one year low of $134.05 and a one year high of $188.43.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The company reported $3.78 earnings per share for the quarter, beating the consensus estimate of $3.56 by $0.22. The firm had revenue of $7.66 billion during the quarter, compared to analyst estimates of $7.98 billion. Penske Automotive Group had a return on equity of 17.43% and a net margin of 3.13%.Penske Automotive Group's quarterly revenue was down .4% on a year-over-year basis. During the same period in the previous year, the company earned $3.61 earnings per share. Equities research analysts expect that Penske Automotive Group, Inc. will post 13.86 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Friday, August 15th will be issued a dividend of $1.32 per share. This represents a $5.28 annualized dividend and a dividend yield of 2.8%. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.26. The ex-dividend date of this dividend is Friday, August 15th. Penske Automotive Group's dividend payout ratio is presently 36.74%.

Penske Automotive Group announced that its Board of Directors has authorized a share buyback plan on Wednesday, May 14th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the company to repurchase up to 2.3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its shares are undervalued.

Penske Automotive Group Profile

Penske Automotive Group, Inc, a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors.